A taxi driver in the Philippines has been recognised for his honesty, after he returned forgotten luggage to an Australian traveller.

Baguio City taxi driver Reggie Cabututan had driven businessman Trent Shields to the Calle Uno workspace in Baguio City on January 17, but Mr Shields left his luggage in the cab. It included his passport, laptop and money.

Fearing he’d lost everything, Mr Shields and his friend Ace Estrada, president of BPO training company Vivixx Academy, went to the police station to log a report.

As they were leaving, they saw Mr Cabututan pulling up in his taxi.

“Never was a sight more welcome than the smiling face of this driver,” Mr Estrada wrote on Facebook, where he recalled the event.

“Mr. Reggie Cabututan, driver of Dustin Brant Taxi, you are the finest of your tribe. I have never felt more proud to be Filipino than today.”

Trent Shields was in such a rush he left his luggage in his taxi. (Facebook: Ace Estrada)

To honour the driver, the Vivixx Academy of Baguio and Coder Factory Academy of Australia decided to award him with a Certificate of Scholarship, valued at $5800, for a Coding Boot Camp in June.

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“When he completes the course, he is guaranteed an internship with an Australian company, leading to a job that will pay him a starting salary of up to 1.7 million (Philippine) pesos (A$44,836) per year,” Mr Estrada said.

“This story is not the first one about Filipino honesty, and certainly it will not be the last.

“Honesty is the best, the most noble, of all human values - and it is always deeply inspiring.”

Mr Estrada’s Facebook post has received more than 21,000 likes and 3700 shares.

In an update to his original post, Mr Estrada announced that Mr Cabututan had been invited to a ceremony at the local City Hall after his story went viral.